Friday, April 4, 2014

Dividends & Income Dividend Machine for 2014 - LEG Leggett & Platt

Another dividend
machine for 2014.

I
have owned this stock for a while and now I think it should be a 2014 Dividend
Machine.Leggett & Platt makes all
kinds of things for homes, offices, airplanes … they’re everywhere.As you know I do not use current trends like
housing starts to determine which stocks to buy.I use my four Dividend Machine criteria and
by golly LEG qualifies.

I
noticed it today as I was looking through my portfolio for covered calls.I found a nice call on LEG and I checked the Dividend Machine Fundamentals of LEG to make
sure I still wanted to own it. LEG's Dividend Machine
Fundamentals are presented below.

Leggett & Platt
(LEG) Dividend Machine Fundamentals

Today,
as I write, LEG is trading about $32.50 which is the price I will use for my
analysis.Over the past 8 quarters, LEG
consistently earned more than it paid out in dividends.EPS = $1.34 and Dividends = $1.20.LEG’s dividend yield is 3.68%.

Dividend
increases are very important to income investors and LEG makes the grade with
an average dividend increase of 4% over the past five years.LEG has been solidly managed and sports a
debt to equity (D/E) ratio of .625.

See
the table below for a summary of LEG’s Dividend Machine Fundamentals.

Covered Call on LEG

The
table below summarizes the income potential for investors who buy LEG at $32.50
and sell a June $35 call.This kind of
additional income is why I own LEG as one of my Dividend Machines.

Consider
LEG for the income producing portion of your investment portfolio.

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Covered Call Opportunities

Square, symbol SQ, is my current favorite stock that is not a dividend machine. To turn it into an income investment, I use SQ's volatiity to buy when it dips and sell calls. See the table above. Note that this call is not included in the post published on 12/12/18 M*

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TheMoneyMadam's Story

My income investing success came from my experience managing my and other people's money since 1993. Successful income investing requires discipline. In this blog I provide specific investments based on my principles of conservative income investing. I hope to help the thousands or even millions of people who have saved and want to invest their nest eggs to retire with income that grows. M* MoneyMadam

Disclaimer

Information on this blog does not constitute investment advice. Review or mention of any stock, bond, or other investment shall not be considered a buy or sell recommendation. Everything in this blog is the opinion of the author and no warranties are expressed or implied. M*MoneyMadam.